To figure out how an enterprise makes money, there is usually a topic that has to be discussed, that is, the business model. The business model is to explain what is your different business logic from others? Can this different business logic create a profitable ecosystem? Now let me explain three basic business models in the market.
Disney business model
In the 1920s, Disney, which had just started, was still a small animation workshop. Later, through continuous mergers and acquisitions and cooperation, Disney's business gradually became diversified. At present, the top three sectors in Disney's revenue structure are television and network business, Disney resort and movie entertainment.
Disney adopts a diversified business model. In fact, there are many enterprises trying to expand in a diversified way, but most of them fail in the end. The key to Disney's success is that it always focuses on the same group of customers, "young people", and conducts diversified expansion according to the different needs of young people.
Therefore, Disney's business model will always only earn the money of the same group of people, and try to meet all their needs. This cross-border diversified business model is more likely to succeed.
P&G mode.
Founded in the United States, P&G has a history of more than 180 years. Its main business is chemical daily necessities. Many common daily brands in life come from P&G. P&G operates more than 300 brands in the world, and is also the top company in the list of the worlds’ top 500. Some people think that P&G's diversified brand is not the same as Disney's diversified operation?
Disney Company achieved success by "focusing on serving the same group of customers and meeting their different needs", while P&G Company, on the contrary, "focuses on the same needs and strives to meet everyone's needs". All kinds of products developed by P&G for more than a hundred years have always been around the main line: to meet the needs of human beings for cleaning and health, it only earns money for this kind of needs.
In order to meet the needs of different people, P&G has developed a number of brands to market for people of different ages and genders. Therefore, P&G and Disney take two opposite paths.
Buffett mode
Buffett is familiar to everyone.Buffett used the "floating fund" accumulated in the insurance business to invest in other high-quality companies, and obtained equity through holding or acquisition, ultimately earning money for enterprise performance growth.
This business model is characterized by "making money with money" and using investment tools to make money in the capital market. Buffett's core investment philosophy is value investment. He looks for companies whose actual value is lower than the transaction price in the market.
In a word, after understanding the three core business models, you can keep an eye on the financial statements of listed companies in the future——
On the one hand, it depends on what core needs are met by the products sold by the enterprise; On the other hand, depending on what kind of people its customers focus on, I believe you can analyze the business model of this company faster than others.
